FINANCE

7th Pay Commission: DA at 53% to be merged into basic pay before January revision for central govt employees?

7th Pay Commission: With this recent DA/DR revision, the allowance has hit the 53% of the basic pay level, triggering speculation that there might be a merger of DA with basic salary.

7th Pay Commission: The Centre recently hiked by 3% the dearness allowance (DA) for serving central government employees and dearness relief (DR) for pensioners for the July-December 2024 period.

Read More: ICICI Bank credit card: Changes in reward points, transaction fees, lounge access terms; check details

With this DA/DR revision, the allowance has hit the 53% of the basic pay level, triggering speculation that there might be a merger of DA with basic salary. The basis of this speculation is one of the instances in 2004 when DA was merged with basic pay after hitting the 50% mark.

However, the government has maintained its stance that DA will not merge with basic pay despite it breaching the 50% level. A senior government official recently said that during the 5th Pay Commission, dearness allowance got merged into the basic as the consumer price index rose by 50% over the base index used by the previous pay commission.

Read More: SBI 1777 Days Green Rupee Term Deposit FD Calculator: What general and senior citizens get on Rs 11 lakh and Rs 21 lakh investments in this special FD

What was 6th Pay Commission stance on DA merger with basic pay?

However, later the 6th Pay Commission categorically stated that DA should not be merged into the basic pay even when it breaches the 50% of basic salary mark.

When will next DA hike be announced?

The next DA hike will be announced in March before Holi festival. However, the hike will be effective from January 2024. The Centre revises DA and DR for employees and pensioners twice a year in March and September/October every year. The revision gets effective from January and July and central government employees usually get April and October salaries with arrears of two to three months.

Read More: Latest SBI Senior Citizen FD Rates: What senior citizens can get on Rs 6 lakh, Rs 12 lakh, and Rs 18 lakh investments in Amrit Vrishti, 1-year, 3-year, 5-year FDs?

How is DA calculated for central government employees?

DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 12 months – 115.76)/115.76] x 100

DA Calculation for Public Sector Employees:

DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100

Here, AICPI means the All-India Consumer Price Index.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top